Invest in Warren Buffett's Berkshire Hathaway Empire Before 2024 Ends: 5 Vanguard ETFs to Consider
Tuesday, Dec 24, 2024 8:13 am ET
As the year 2024 draws to a close, investors are looking for ways to capitalize on the wisdom of legendary investor Warren Buffett. Berkshire Hathaway, the investment empire Buffett built, is a prime target for those seeking exposure to his investment prowess. While buying Berkshire Hathaway stock directly is an option, exchange-traded funds (ETFs) that hold Berkshire Hathaway stock can provide diversification and lower costs. Here are five Vanguard ETFs that offer exposure to Berkshire Hathaway and are worth considering before the end of 2024.
1. Vanguard Financials ETF (VFH -0.07%) - 0.22% expense ratio
The Vanguard Financials ETF offers broad exposure to the financial sector, with Berkshire Hathaway as the largest holding at 7.7%. This ETF provides diversification across banks, insurance companies, and other financial services firms. With an expense ratio of just 0.22%, VFH is an attractive option for investors seeking exposure to Berkshire Hathaway while maintaining a diversified portfolio.
2. Vanguard Mega Cap Value ETF (MGV -0.38%) - 0.38% expense ratio
The Vanguard Mega Cap Value ETF focuses on large-cap value stocks, with Berkshire Hathaway as the fourth-largest holding at 4.5%. This ETF includes other Buffett stocks like Coca-Cola, Bank of America, and Chevron, providing investors with exposure to some of Buffett's highest-conviction ideas. With an expense ratio of 0.38%, MGV offers a cost-effective way to gain exposure to Berkshire Hathaway and other value stocks.
3. Vanguard S&P 500 Value ETF (VOOV -0.29%) - 0.29% expense ratio
The Vanguard S&P 500 Value ETF tracks the S&P 500 Value Index, with Berkshire Hathaway as the fifth-largest holding at 4%. This ETF offers broad-based exposure to value stocks in the S&P 500, providing investors with a diversified portfolio while maintaining exposure to Berkshire Hathaway. With an expense ratio of 0.29%, VOOV is an attractive option for investors seeking a balance between diversification and exposure to Berkshire Hathaway.
4. Vanguard Value ETF (VTV -0.34%) - 0.34% expense ratio
The Vanguard Value ETF tracks the CRSP U.S. Large Cap Value Index, with Berkshire Hathaway as the fifth-largest holding at 3.9%. This ETF provides exposure to large-cap value stocks with a focus on dividend-paying companies. With an expense ratio of 0.34%, VTV offers investors a cost-effective way to gain exposure to Berkshire Hathaway and other value stocks while generating income.
5. Vanguard S&P 500 ETF (VOO -0.72%) - 0.72% expense ratio
The Vanguard S&P 500 ETF tracks the S&P 500 Index, with Berkshire Hathaway as the largest holding at 1.7%. This ETF offers broad-based exposure to the U.S. stock market, providing investors with a diversified portfolio while maintaining exposure to Berkshire Hathaway. With an expense ratio of 0.72%, VOO is an attractive option for investors seeking broad market exposure while gaining exposure to Berkshire Hathaway.

When considering these ETFs, it's essential to keep a few factors in mind. First, diversification is key. ETFs provide exposure to multiple companies, reducing the impact of any single stock's performance. Second, expense ratios matter. Lower expense ratios mean more of your investment goes towards the underlying assets rather than fees. Third, sector focus is crucial. Choose an ETF that aligns with your investment goals and risk tolerance. Lastly, Berkshire Hathaway's role in each ETF varies, so consider the proportion of your investment allocated to this stock.
Investing in these Vanguard ETFs that hold Berkshire Hathaway stock can provide exposure to Warren Buffett's investment empire while maintaining diversification and lower costs. By considering these factors and choosing the right ETF for your portfolio, you can gain exposure to Berkshire Hathaway and other high-quality companies while maintaining a balanced and diversified portfolio. As the year 2024 comes to an end, these five Vanguard ETFs are worth considering for investors looking to tap into the wisdom of Warren Buffett.
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